India's growth story

India's spending and growth story

1. India's economy is seen growing at around 7.6 percent in the next financial year
2. The figure is a rebound from a three-year low of sub-7 percent growth in the 2011/12 fiscal year that ends on March 31
3. Growth in Asia's third-largest economy faltered to a three-year low of 6.1 percent in the December quarter
4. Foreign exchange reserves enhanced by US$6.7 billion from US$304.8 billion at end-March 2011 to US$311.5 billion at end-September 2011, covering nearly the entire external debt stock
5. The gross domestic product (GDP) growth is expected to pick up to about 7.6 percent in 2012/13
6. India's 2011/12 growth is estimated at 6.9 percent.
7. Finance Minister Pranab Mukherjee played it safe in unveiling the federal budget on Friday
8. The Budget pledged reforms but set only modest targets for trimming a ballooning fiscal deficit, disappointing investors
9. Offering some respite to the common man, Finance Minister Pranab Mukherjee today proposed that the personal income tax exemption limit will be raised to Rs 200,000 (Rs 2 lakh) from the existing Rs 180,000.
10. The graph clearly shows that energy, transport and social services will get a major chunk of the Central Plan's outlay in the next fiscal.
11. Tax proposals in this year's Budget suggested progress towards DTC and GST.
12. The government will raise substantial money through borrowing and other liabilities, while it will spend most on the Central Plan.
13. A large part of the expenditure is used to pay interest on government debt.
14. Finance Minister Pranab Mukherjee called for reducing India's subsidy burden below 2 percent of GDP, from about 2.5 percent.
15. The FM pledged reforms but set only modest targets for trimming the country's ballooning fiscal deficit.
16. To give a further push to its rapid military modernization, India will increase its military spending by over 17 percent to Rs.1,93,407 crore.
17. Are you happy with India's growth story and this year's Budget? You can share your view by posting a comment below.